Standard Chartered Bank (Pakistan) Limited, the country’s largest and oldest International bank, announced its financial results for first quarter 2021.
The Bank delivered a resilient financial performance with a Profit before tax of PKR 5.9 billion. The profitability against the preceding quarter (Q4’20) is up by 61per cent mainly on account of strong recoveries and prudent risk approach.
Bank made revenue of PKR 8.3 billion for the period, which is reflective of sharp reduction in interest rates, subdued economic activity and market volatility.
Operating expenses were well managed through efficiencies and disciplined spending with an increase of only 2per cent compared to same period last year. Bank also continued to invest in its technology and digital infrastructure to enable future growth and provide innovative services to our clients.
Moreover, strong recoveries of bad debts, coupled with lower impairments as a result of disciplined risk performance, led to a net release of PKR 573 million in Q1’21 compared to a charge of PKR 187 million in the comparative period.
All businesses have positive momentum with strong growth in underlying drivers. This is evident from pickup in net advances, which have grown by 20per cent since the start of this year. This was a result of targeted strategy to build profitable, high quality and sustainable portfolios. With a diversified product base, the Bank is well positioned to cater for the needs of its clients.
Following on from the unprecedented growth in deposits last year, the Bank’s total deposits grew by PKR 1.2 billion in Q1’21, whereas current and saving accounts grew by PKR 6 billion (up 1per cent) since the start of this year and comprise 93per cent of the deposit base.
Commenting on the results, Mr. Rehan Shaikh, Chief Executive Officer, Standard Chartered Bank (Pakistan) Limited said,
“I am pleased to announce that the Bank continues to deliver strong results as evident by our performance in first quarter 2021. The results are a depiction of our solid foundations and robust business fundamentals amid tough external environment.
With the outbreak of third wave of Covid-19 in Pakistan, our focus continues to be on the health and wellbeing of our staff, clients and the greater good of our communities. Despite the external challenges, our digital journey is well on-track as the digital adoption and volumes continue to grow as we bring more innovative solutions to our clients. We are focused on our transformation journey to position the bank for the future as the world resets. We have also made steady progress in further strengthening our control and compliance environment. As we proceed, we are fully committed to delivering a sustainable growth for our shareholders and bringing the best in class services and solutions for our clients.”